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Measure 67

Argument in Opposition

IT'S EASY TO GET CONFUSED. MAKE SURE YOU KNOW WHAT
YOUR VOTE MEANS BEFORE YOU CAST YOUR BALLOT.

Unfortunately, it's all too easy to get confused about what it
means to be for or against a referendum. Before you vote,
please be sure to read the measures carefully and understand
what the result of a "YES" and "NO" vote would be.

VOTE YES if you want to:

*Raise the $10 corporate minimum income tax for the first time
since 1931.

*Protect funding for our schools, public safety and social
services.

*Cut taxes on unemployment benefits for hundreds of thousands
of Oregonians.

*Make sure Oregon gets its share of federal matching funds
to help pay for healthcare and social services during the
recession – money that would otherwise go to other states
instead of Oregon.

*Protect Oregon's middle-class families and small businesses
while making sure that out-of-state corporations pay more than
$10 for doing business in Oregon.

VOTE NO if you want to:

*Keep the 1930s law that allows corporations to pay just $10 a
year in the corporate minimum income tax.

*Force additional cuts of nearly $1 billion dollars from schools,
public safety and essential services in a special February
session of the legislature.

*Reject federal matching funds for Oregon's healthcare and
social services.

Our Oregon is a non-partisan non-profit organization
dedicated to promoting economic and tax fairness for all
Oregonians; protecting schools, public safety and healthcare;
and stopping unfair giveaways and loopholes that shift
the burden to the middle class.

(This information furnished by Kevin Looper, Our Oregon.)

Argument in Opposition

Measure 67 is Harmful to Oregon Farmers

Five generations of our family have worked at our Tillamook
dairy. It's our life and our business. Milk prices are plunging
and it's now harder than ever to keep our business afloat. We're
worried that the new, permanent tax increases legislators
passed in June will hurt our farm and the families it supports.

Economists estimate these tax increases will cost 70,000
Oregonians their jobs. We can't afford taxes that will cost more
jobs. I can't vote to send more pink slips to Oregonians.

Legislators say their plan only taxes the rich. They're wrong. We'll all end up paying more for groceries, gas, and other
services, and that impacts all Oregonians, especially the poor.
Facing higher taxes, small businesses like ours would be forced
to lay off workers, reduce wages and benefits, or close their
doors.

Worse yet, the higher taxes would be retroactive to
January 1, 2009, and no money to cover this increase has
been withheld from Oregonians' paychecks in all of 2009.
Retroactive tax bills will hurt businesses, too.

Despite the bleak economy, Measure 67 would tax businesses
up to $100,000 a year, even if they didn't make a profit. This
tax increase will make Oregon's corporate minimum 20 times
higher than New York—the nation's highest.

It bothers me that the $733 million in new taxes will help
fund the $269 million budgeted for state employee salary
increases. Instead of pinching pennies like the rest of us,
legislators increased overall state spending by $4.7 billion – 9%
higher than the previous budget.

Public employee unions say the sky will fall if the new taxes
do not pass. I'm here to tell you that the sky is already falling
on small businesses like mine.

Argument in Opposition

Take it from us - The National Federation of Independent Businesses
represents almost 8,000 small businesses in Oregon.

It's true that all small businesses will be affected by these taxes
in one way or another. And small businesses will be forced to
pass on that pain to regular Oregonians.

Businesses will have to pay up to $100,000 in taxes, even if
they don't make a profit. It's the largest tax increase in Oregon's
history. Measure 67 would mean Oregon has the highest business
tax in the nation – 2000% higher than any other tax.

THESE TAXES WILL AFFECT YOU:

Businesses will treat taxes as a cost of doing business, so
we'll all end up paying more for groceries, gas and other
services.

Businesses will have to make a choice between paying the
taxes and keeping their employees, so the taxes will mean
people will lose their jobs.

In fact, economists estimate the taxes would cost 70,000
Oregonians their jobs. That's on top of the almost 130,000 jobs
that have already been cut since the recession started. Meanwhile,
government sector employment has continued to rise.

How can the legislature tax the very people who create jobs in
Oregon?

Please VOTE NO on Measure 67. Help almost 8,000 small
businesses save Oregon jobs.

(This information furnished by Claudia Staton, Staton
Companies.)

Argument in Opposition

Farmers are voting NO on Measure 67

For many of Oregon's farming families and other family businesses
that are hanging by a thread through the recession,
Measure 67 could be the fatal blow.

Oregon family farmers and ranchers cannot afford the gross
revenue tax in Measure 67. These permanent and retroactive
taxes passed by this legislature will impact Oregon's farmers
and ranchers exceptionally hard and are plain wrong.

By its very nature, farming and ranching is a high-volume,
low-margin business. That means even though a farm or ranch
family can have high gross income, after we pay employee
wages and benefits, input costs, transportation, land, fuel,
utility, equipment, and other costs, even in the best years our
net income is just a tiny fraction of that gross revenue figure.

Measure 67 taxes farm families on this gross revenuewhether they make a profit or not.

The economy makes things even worse, because in years like
this countless farm families across Oregon will not be
profitable.

A family farm that did not earn a profit and has to dip into
savings to make ends meet this year will still have to pay
this new retroactive tax.

Forcing farming families, or any other Oregon family business,
to pay increased retroactive taxes when they did not
break even is wrong.

Believe it or not, it gets even worse for farm co-ops, one of the
pillars of the agriculture community in Oregon.

Members of agricultural cooperatives may even pay these
taxes twice. It is ridiculous to ask Oregonians to pay taxes
on taxes.

For the sake of a healthy agricultural community in Oregon,
please join us in voting NO on Measure 67.

Argument in Opposition

Measure 67 Punishes People for the Privilege of Losing Money

I've taken pride in creating jobs for fellow Oregonians as the
owner of a Medford-based trucking company. But this economy
has been hard on Oregon businesses. This year was hard on
my company, and we will struggle again next year.

I'm worried about what will happen to my employees' jobs if
the tax increases from Measures 66 and 67 pass. Companies
like mine could pay up to $100,000 in taxes, and I would be
forced to lay off people.

And because my business is a large C-Corp, the tax increases
will be permanent. This year, I would have to pay retroactive
taxes for 2009 even if my business loses money. My business
and other Oregon businesses haven't budgeted for an extra bill
from the Department of Revenue.

Despite Oregon's 12.2% unemployment rate, the legislature
voted to raise taxes and fees by nearly $2 billion. Economists
have estimated that the tax increase from Measure 66 and 67
would cost as many as 70,000 Oregonians their jobs.

The state is spending irresponsibly. Legislators increased
overall state spending by 9%. And they already had $1 billion in
extra cash reserves to spend without enacting $733 million in
tax increases. Measures 66 and 67 only protect state jobs, while
private sector businesses like mine have been forced to tighten
our belts.

Help me protect Oregon from job-killing taxes. Vote no on
Measures 66 and 67.

Argument in Opposition

Ask the Tax Professional: A CPA says this measure is bad for
Oregon.

As a certified public accountant, I have spent my career studying
Oregon's tax system, analyzing facts, and providing advice
to individuals, families, and small businesses. I have extensively
studied Measures 66 and 67 and will share with you the
factual information I am sharing with my clients:

*A "yes vote" on Measures 66 and 67 is a vote for the largest
tax increase in Oregon history.

*A "yes vote" on Measures 66 and 67 is a vote to give
Oregon the second highest income tax rate in the nation.

*A "yes vote" on Measures 66 and 67 is a vote to retroactively
increase taxes on some Oregonians to January 1, 2009,
even though no money to cover this tax increase has been
withheld from their paychecks all this year.

*A "yes vote" on Measures 66 and 67 is a vote which may
force many small businesses to lay off their workers, reduce
wages and benefits and close their doors.

I'm an accountant, not a politician. I have not told my clients
how to vote on Measures 66 and 67. I have just given them
the above factual information and let them make up their own
mind. There is no doubt I will be voting. I have seen enough
tax returns to know that Oregon families and businesses are
hurting.

Now is not the time for the largest tax increase in Oregon
history. Vote NO on Measures 66 AND 67.

Argument in Opposition

Vote NO on Measure 67

The Salem Area Chamber of Commerce opposes Measure 67.
Many of the Salem Chamber's 1,200 business members would
be directly impacted by measure 67 and all people will be indirectly
affected by higher unemployment and higher prices for
food, goods, and services. Here is why:

C-Corporations are not just major corporations like Mastercard,
Sprint, and Macy's like proponents would like voters
to believe. C-Corporations are also family owned small
businesses that would be crippled under this new tax
increase.

Measure 67 would create a brand new gross sales tax on
c-corporations that make no profit. The new tax would
result in a $100,000 tax on some C-Corporations. The
state with the closest tax on this scale is New York with a
maximum tax of $5,000. Oregon's tax would be as much as
20 times higher than the next closest state!

A new tax on gross sales does not make sense. Businesses
vary greatly in their profit margins and high gross sales
do not always equal high profits. Industries with very high
sales and low profit margins like car dealers, petroleum
dealers, and grocery stores would all be severely hurt by
this new tax.

An increase in the corporate income tax rate from 6.6% to
7.9% for C-Corporation income over $250,000 would be a
20% increase on taxes currently paid. Oregon's new tax rate
would also be 20th worst in the nation, according to the Tax
Foundation, a nonpartisan nonprofit that collects data on
tax policy.

Please say NO to taxes that cause more hurt to Oregon's ability
to recover from an economic recession. Hurting private business
will only damage Oregon's economy, increase unemployment
and have all citizens paying more for goods and services.

Argument in Opposition

I'm one of the 130,000-plus Oregonians who've lost a job since
the recession started. I'm here to tell you it hasn't been easy.
My husband and I recently lost our house. I wouldn't wish this
on anyone, which is why I'm urging Oregonians to vote no on
Measure 67. The legislature's permanent corporate tax increases
will wipe out more private sector jobs and will only delay the
day I can get back to work.

As the bookkeeper for Bend Fire Protection, I watched the company's
bottom line go down as the unemployment rate went
up. First, the owner had to reduce pay and medical benefits.
But that wasn't enough. Then came the pink slips. Our payroll
went from 19 to four workers.

The people behind Measure 67 won't tell you what their new
tax on a corporation's gross sales will do. It will put a tax of up
to $100,000 on companies that don't make a profit. How fair is
that?

It's a good deal only for legislators who want to keep spending
with reckless abandon. (Did you know that the legislature's
2009-11 budget is $4.7 billion or 9% higher than 2007-09's?)

It's a terrible deal for the rest of us.

What do you think these struggling businesses will do when
the bill for higher taxes comes due? Reduce salaries and benefits
more, and cut additional workers to pay Measure 67's tax
increases.

Measure 67's permanent tax increases will do nothing to create
new jobs that will, I keep hoping, provide a decent living for
me and my family soon. On the contrary, economists estimate
that Measures 66 and 67's tax hikes will together cost Oregon
another 70,000 lost jobs.

Tell the legislature to tighten its own belt before it asks the rest
of us to send them our already-tightened belts.

Vote no Measure 67 so we all can get back to work.

(This information furnished by Lynelle Buehner.)

Argument in Opposition

Oregon economists provide more than 70,000 reasons to
oppose Measures 66 and 67

We are consulting economists who have studied the economic
impact of the legislature's corporate and personal tax
increases. Measure 66 and 67's tax increases will cost more
than 70,000 jobs if you combine our separate calculations for
the corporate and personal income tax increases.

Pozdena concludes that the corporate tax rate increase would
cost the state between 22,000 and 43,000 jobs in 10 years.
Conerly concludes the personal tax increase would cost 36,000
in 10 years. No prediction is exact, but we both believe these
tax hikes will cause growing job losses for Oregon.

The background for our opinions is on the web at:
www.CascadePolicy.org. You will find that our views are
shared by the OECD, a 30-country organization that studies
factors affecting economic development. But our conclusions
are also simple, common sense.

Capital and people are mobile – especially for the corporations
and high-income households targeted by the legislature. If
they move, we lose jobs that their businesses, spending and
investment create. Even for those staying, the higher rates sap
the motivation to work harder and create more jobs.

Pozdena's estimates of corporate tax effects are based on
analyses of country-to-country movements of capital, but stateto-
state movements are even easier for companies. His job loss
estimates, therefore, are probably low.

People also do not want the benefits of their extra effort taxed
away. Already, Oregonians selling businesses often move to
Washington to avoid Oregon's taxation of personal capital
gains. Others can take their job anywhere the Internet connects.
Recruiting and motivating workers is harder with high
income taxes. Targeting our economy's heroes – successful
business people and workers who've achieved success in 21st
century industries – is job suicide.

Higher tax rates will cost Oregon jobs now, and slower growth
will hamper Oregonians' job prospects long into the future.
Please vote no on Measures 66 and 67.

Argument in Opposition

These Measures will DELAY Economic Recovery

Oregonians may be focused on whether it's fair to increase
public employee jobs by nearly 2,700 at the expense of losing
an estimated 70,000 private labor jobs in this year's Measure
66 and 67 debates.

But the threat to Oregon from increasing taxes on Oregon's
businesses in this economic climate is that it will delay recovery
from this recession.

The reality is that this recession has been devastating to all
Oregonians, including the Oregon business community. Statewide
unemployment is 12%. Unemployment in the construction
industry is running above 18%.

Over 220,000 Oregonians are without work, even before we
consider the employment impact from these two tax measures.
The family suffering has to be considerable, and the people
affected deserve our prayers.

Taxing Oregon's corporations and small businesses will,
without question, further weaken the state's economy. It will
cost us more jobs, weaken business enterprise and assure
that recovery will be, at best, anemic for years to come. What
Oregonians are faced with is the reality that increasing government
at the expense of private business will never lead us out
of this recession.

Only new money coming into the economy will begin to move
Oregon's economy forward. What that means is that Oregon
needs a healthy and robust business community. Capital
should be readily available to Oregon businesses to restructure,
retool and reinvest. Restricting capital on our business
community at this crucial juncture will have the opposite effect.

The result: Oregonians will continue to find themselves in the
unemployment line; some businesses will look for states with
a better tax structure; businesses in the state will see limited
growth; and for those state employees reading this - state
revenue will decline. Ultimately, even the public employees
supporting these two measures will lose.

We urge you to vote "NO" on Measure 66 and 67. It is bad for
business, bad for jobs, and bad for Oregon.

Argument in Opposition

A message from Independence and the White House

I manage a farm in Independence. I think of myself as a plainspoken
man. But I couldn't express my opposition to Measure
67's permanent tax increase any clearer than President
Obama's words to NBC News last August. "The last thing you
want to do is raise taxes in the middle of a recession, because
that would just …take more demand out of the economy and
put businesses in a further hole."

That's precisely why I became a petitioner to overturn the
legislature's income tax increase. Oregon is the middle of the
worst economic crisis since the Great Depression. More than
130,000 private-sector jobs have vanished. Almost a quarter
million Oregonians are out of work. We cannot afford to take
more demand out of Oregon's economy and put our state's
businesses in a further hole.

Measure 67 will slap a permanent tax of up to $100,000 on
businesses that don't make a profit. What will these struggling
companies do if Measure 67 passes? Increase prices, reduce
salaries and benefits or cut workers. Those lost jobs will be
among the 70,000 jobs economists estimate will be wiped out
by the legislature's two tax increases.

We'll all suffer.

The legislature was so eager to raise taxes in order to raise
spending – by $4.7 billion overall! – that it made Measure 67's
tax increase retroactive to January 1, 2009. That's right, this
legislative proposal would actually increase taxes on income
earned before its bill passed – and before the 2009 Legislature
even convened.

Worse, companies haven't been asked to set aside money to
pay Measure 67's retroactive tax increases. What will happen if
Measure 67 passes and Oregon businesses have to scramble to
make these retroactive payments? As President Obama knows,
it's going to take more demand out of the Oregon economy and
put out state's businesses in a further hole.

I'm with President Obama. Vote no on Measure 67.

(This information furnished by John Thomas.)

Argument in Opposition

Fellow Oregonians:

Albany is a wonderful community in the heart of the
Willamette Valley. We think it is a great place in which to live,
work, and raise a family. While there are a few large employers
in Albany, ours is a community that is made up of small businesses.
The Albany Area Chamber of Commerce is proud to be
the voice of those small businesses.

It is no secret that times are very tough for small businesses.
Many are just barely surviving economically each month. The
last thing small businesses need now is a tax increase.

The Albany Area Chamber has extensively studied Measures
66 and 67, and we have concluded that passage of these
measures will force many small businesses to close their
doors, to lay off employees and/or to increase prices, meaning
that everyone in the community will end up paying more
for groceries, gas, and other goods and services. For these
reasons, we strongly recommend a no vote on Measures 66
and 67.

Of course, the tax increases contained in Measures 66 and
67—the largest tax increases in Oregon history—won't just
harm small businesses in Albany. They will harm small businesses
in every corner and in every community in Oregon. They
will lead to fewer jobs in every corner and in every community
of Oregon. They will lead to higher prices for goods and services
in every corner and every community of Oregon.

Please join with the members of the Albany Area Chamber of
Commerce in voting NO on Measures 66 and 67

Argument in Opposition

The Portland Business Alliance urges a NO vote
on Ballot Measures 66 and 67.

The Portland Business Alliance, a coalition of nearly 1,400 small,
medium and large employers in the Portland-metropolitan area,
urges you to vote no on Ballot Measures 66 and 67.

The Alliance and its members support schools and needed
public services. For more than five years, when Portland-area
schools faced unacceptable budget challenges, the Alliance
backed temporary business tax increases, as well a temporary
local income tax, to keep schools open. In 2007, the Alliance,
with other business organizations, agreed to give up the corporate
kicker to fund the state's first-ever Rainy Day Fund, and
in 2009 the Alliance was prepared to support temporary tax
increases to bridge the temporary budget gap.

But the legislators in Salem ignored the pleas of Oregon's
employers not to hurt jobs in the middle of one of the deepest
recessions in history. They took advantage of a short-term
budget shortfall to dramatically and permanently increase
taxes on business and individuals.

Two-thirds of taxpayers affected by the personal income tax
increase are employers, many of them small -- all of them
struggling to keep Oregonians employed. Some businesses
will pay a new gross sales tax of up to $100,000, even if they
are making no profit, laying off workers and fighting to survive.

Economists estimate these retroactive taxes would cost
Oregonians 70,000 jobs. According to the State Economist,
Oregon ranked 47th among the states for job creation in July
and it may be 2013 before Oregon's employment reaches prerecession
numbers.

The small, medium and large employers of the Portland
Business Alliance are ready to work with legislators to find a
reasonable and responsible approach to solving state budget
issues. But Measures 66 and 67 are neither reasonable nor
responsible.

Please join Portland-area employers in voting NO on Ballot
Measures 66 and 67.

Argument in Opposition

"About the only way they would pay the minimum $10 is if
they lost money. So the question becomes: Why would a state
charge more for the privilege of losing money in Oregon?"

- Albany Democrat-Herald editorial, November 3

"Democrats picked a fight with business, recklessly spent
reserves and risked their majorities. They dared to raise taxes,
hundreds of millions of dollars on business and upper-income
Oregonians, even as the state's unemployment climbed past
10, 11, 12 percent, to the nation's second highest."

- The Oregonian editorial, June 30

"Democrats ignored please from a unified statewide business
community by enacting massive, permanent tax hikes, and
they over-protected their private and public union supporters at
the expense of all tax-paying Oregonians."

- Yamhill Valley News-Register editorial, July 3

"The legislature gave business a rude shock. It taxed gross
income and made the tax increases permanent. That ups the
odds that taxpayers will rebuke the tax increases at the ballot
box."

- The Bend Bulletin editorial, July 8

"In important and symbolic ways lawmakers displayed breathtaking
indifference to businesses, which provide jobs and, indirectly,
the income taxes upon which Salem relies so heavily."

- The Bend Bulletin editorial, July 1

"In contrast to Oregon's actions, Washington state plugged
its $9 billion budget gap without a general tax increase, to the
credit of Gov. Chris Gregoire and the 2009 Legislature. The
resulting biennial budget was tough on college students, public
employees and Washingtonians in general, but it didn't single
out and punish the better-off residents or the business
community".

Argument in Opposition

Oregon Business Community Opposes Permanent Job-Killing Taxes

This didn't have to happen. In order to help the Oregon legislature
address its revenue shortfall, the business community
proposed a modest, temporary 2-year tax increase to help state
government through these lean years.

But the legislature rejected this proposal. Why? Because they
wanted to raise taxes even higher, and they wanted their new
tax increases to be permanent.

In short, the Oregon legislature exploited our state's worst
economic crisis in more than 70 years to pass permanent
tax increases on Oregon taxpayers and small businesses. As
Oregon's unemployment rate soared above 12 percent - among
the worst in the country - the legislature chose to pass $733
million in new, permanent, job-killing taxes.

The Measure 67 tax increases give Oregon the highest corporate
minimum taxes in the country – 20 times higher than New
York – which has the next highest rates. The new corporate
minimum taxes in Measure 67 would tax businesses up to
$100,000 per year, even if they don't make a profit.

What's more, Measure 67 implements a new gross sales tax
on unprofitable Oregon businesses that will further stress
Oregon's business community and force further layoffs and
reduced wages and benefits. A new gross sales tax that penalizes
unprofitable businesses will make Oregon uncompetitive
for business expansion and job growth.

That's why economists predict that the Measure 67 business
tax increases, in combination with the Measure 66 tax hikes,
will kill over 70,000 Oregon jobs.

What's worse, the Measure 67 tax increases are retroactive to
January 1, 2009, and no money to cover this tax increase has
been withheld from Oregon businesses during all of 2009. This
will further dampen the prospects for Oregon businesses to
begin their recovery.

At a time when entire families are out of work, we can't afford
taxes that will cost even more Oregon jobs.

Argument in Opposition

Restaurants employ more people than any other private sector
industry, and we urge you to vote NO on Measure 67.

Local restaurants are already closing their doors and laying off
workers because of the bad economy.

The average full-service restaurant that closes in Oregon eliminates
between 35-50 jobs.

Measure 67 will impose a new corporate minimum tax of up to
$100,000 on companies that do not make a profit. Many restaurants
are already operating on zero profit.

Measure 67 imposes three tax increases: (1) an increased filing
fee on all business filings; (2) an increase in new corporate
minimums on LLCs that currently pay income taxes; and (3) a
new business entity tax on all businesses.

These tax increases are retroactive to January 1, 2009. If this
measure passes, business owners will have to pay even more
money on their 2009 taxes – money they haven't been setting
aside.

Economists estimate Measure 66 and 67 will cost 70,000
Oregonians their jobs. Economists also warn that businesses
generally won't hire employees back until they show positive
income growth for two consecutive quarters.

We need to stop business closures and stop increasing taxes
on businesses that are not profitable. And, we need to stop
increasing fees on small businesses that are currently paying
taxes.

Tax increases in Measure 67 will cost jobs. We cannot afford
any more closures in Oregon.

Getting more people to work is what increases revenue to the
state; taxing small business and unprofitable companies will
cost jobs and lose tax money.

Argument in Opposition

Common Cause Oregon is neutral on Measures 66 and 67, but
is tracking campaign contributions.

The two chief petitioner committees that collected signatures to
qualify Measures 66 and 67 raised $960,196 as reported by the
signature turn-in deadline of September 25. Most of this money
came from two political committees. Oregonians Against
Job-Killing Taxes gave 64 percent or $610,072, while Taxpayer
Defense Fund gave $194,280 or 20 percent of total chief petitioner
fundraising.

The largest single donation to Oregonians Against Job-Killing
Taxes was $100,000 from Oregon Bankers Association.
Associated Oregon Industries and its political committee gave
$125,300, Weyerhaeuser gave $51,194, Common Sense for
Oregon, Inc. gave $50,000 and Roseburg Forest Products gave
$45,000.

The top two donors to Taxpayer Defense Fund were Nevadabased
Loren Parks, who gave $75,000, and $22,752 from
FreedomWorks, Inc. in Washington, D.C. These contributions
comprised 51 percent of Taxpayer Defense Funds total fundraising
of $190,446.

Detailed charts on the contributions to qualify Measures 66
and 67 are available at www.commoncause.org/oregon at the
research center.

In mid-November, when this statement was prepared, "yes"
and "no" campaign money was just starting to flow so the following
contribution information is only preliminary.

The top three donors to Oregonians Against Job-Killing Taxes
after the signature turn-in deadline through mid-November
were $50,460 from Associated General Contractors of America,
$25,700 from the Oregon Restaurant Association and its affiliated
political committee, and $17,900 from the Portland
Business Alliance and its political committee.

The top three donors to Vote Yes for Oregon, as reported
through mid-November, were $75,000 from the Oregon Public
Employees Union, SEIU Local 503, $50,000 from the American
Federation of Teachers-Oregon Issue PAC, and $25,000 from the
Oregon Health Care Association.

Updated "yes" and "no" campaign contribution information
will be at www.commoncause.org/oregon at the research
center when you receive your Voters' Pamphlet. Common
Cause Oregon appreciates your interest in "following the
money" in these ballot measure campaigns.

(This information furnished by Janice Thompson, Common
Cause Oregon.)

Argument in Opposition

Oregon Chambers of Commerce: Measure 67 is bad for
business

Thousands of businesses in Oregon are facing a terrible economic
situation. They've had to downsize their businesses and
lay off employees.

At a time when business owners and working Oregonians have
had to tighten their belts, the state government increased its
spending by 9%.

In the midst of the worst economic crisis in more than 70 years,
the legislature voted to permanently increase income taxes on
businesses and high-income Oregonians.

Businesses would be taxed up to $100,000 per year - even if
they didn't make a profit.

Please join the Oregon State Chamber of Commerce and your
local chamber in voting NO on Measure 67.

Argument in Opposition

Oregon Farmers will pay taxes when they LOSE money
with Measure 67.

I'm a third-generation cherry grower in The Dalles. I'm also a
member of the Oregon Cherry Growers, the largest producer
and processor of maraschino cherries in the world. This growerowned
cooperative formed in 1932 and supports approximately
70 cherry farms in The Dalles and the Willamette Valley. Yet,
as an individual and as a part of this industry, I can attest that
we're facing hard times.

Measure 67 is just wrong. Taxing businesses based on gross
revenues rather than profit ensures one thing - I'll be paying
the Oregon Department of Revenue, whether or not I can repay
my annual operating loan at the bank. This tax philosophy
seems to say, "We'll take the money, whether your farm is
going to make it or not."

This season, the market price for my fresh-pack cherries didn't
even cover the cost of picking and packing the fruit. But my
farm did receive revenue. It's not right that I pay taxes on that
revenue before I pay my operating expenses.

On the process side, the world price this year was 20% less
than 2008. Yet, my labor costs increased. Fertilizer and fuel
costs increased. But, my farm did receive revenue. Negative
margins or not, under Measure 67 my farm will pay additional
taxes – in a loss year!

Unfortunately, I am not unique in struggling to feed my family
and keep my farm running. Now, these predatory taxes might
force me to sell the very farm that's allowing me to put food on
my table and yours.

Vote NO on Measure 67. When farms and small businesses
like mine hang it up, Oregon's economic base and the jobs it
creates will disappear as surely as my orchard.

(This information furnished by Greg Johnson, Renken Orchard.)

Argument in Opposition

Oregon Small Business Coalition asks you to support small
businesses -
VOTE NO ON MEASURES 66 & 67

We at the Oregon Small Business Coalition represent 40,000
Oregon businesses. Many of those businesses will lose money
this year.

Why would so many companies operate at a loss? In these difficult
economic times, they may not have a choice. They need
to keep food on their tables. They need to keep their employees
working.

Even with no profit, many will have tax burdens similar to the
cost of one month of health insurance for their employees.

Why? Because our Legislature has given into the simplistic
notion that the solution to a budget deficit is to pile more taxes
onto the backs of Oregon businesses regardless of whether
those businesses are turning a profit.

Measures 66 and 67 engage in the kind of generalized thinking
that holds up businesses as poster children for corporate
greed, that decides that firms providing jobs and selling goods
in Oregon should be held accountable for the government's
inability to balance its books.

Where does that money come from for a company with no
profit? Do they cut jobs or health care or just close down
entirely? One can only imagine the choices that small business
owners will have to make in order to meet this new tax liability.

The mission of the Oregon Small Business Coalition is to protect
and enhance Oregon's small business environment. To some
extent, that should be the mission of our Legislature, as well.

Instead, if Measures 66 and 67 pass, Oregon stands to lose
70,000 more jobs, in addition to the 130,000 we've already lost.

Isn't that enough? Vote NO on knee-jerk reactions to complex
problems that risk jobs in your community. Join small businesses
across Oregon in voting NO on Measures 66 and 67.

(This information furnished by Jeff Stone, Oregon Small
Business Coalition.)

Argument in Opposition

My name is Charlie Tindall, part owner of the family owned
business, Blue Line Transportation. Blue Line has been an
Oregon business since the 1940's. We transport: animal feeds,
fertilizers, de-icers, gas, diesel, jet fuel and asphalt for road
construction and maintenance. We have a proud history of
servicing our customers. Awesome employees provided these
services. We provide family wage jobs, full medical, vision,
dental and profit sharing benefits for employees and families.

Running a heavy regulated small business has been fun but
challenging. Unfortunately, if Measures 66 and 67 are approved,
it will add to these challenges. The additional taxes would
force us to cut benefit packages and lay off employees. We will
also be forced to join other small businessmen and women to
collect these new taxes and pass these expenses on to YOU!

We have experienced many ups and downs over the years
but this current economic recession is very frightening. We
have already been forced to cut back and we have seen many
of our customers do the same. How many of us don't know
someone who has lost a job in recent months? Instead of
helping businesses to expand and create jobs, the Legislature
has put in place four different tax increases that will make our
current economic condition worse.

The tax increases contained in Measures 66 and 67 are the
largest in Oregon history. Oregon cannot get back on track
if the Legislature continues to recommend policies that will
lead to further job losses in the private sector. Private sector
employment growth must outpace government employment
to have any stability in tax revenue.

Oregon is my home. I want our business to remain here in
the hands of our family members and employees. I plan to help
this happen with my "NO" vote on Measures 66 and 67 and I
hope you will join me with your "NO" vote in defeating jobkilling
taxes.

Argument in Opposition

Fellow Oregonians:

It was the privilege of my life to serve two terms as Governor
of this great state. I remain indebted to the people of Oregon,
and I look back at my eight years in the Governor's office with
great pride.

While I was Governor, Oregon was faced with one of
the greatest economic recessions in our state's history. A
Republican Governor and a Democrat legislature compromised
to cut state spending and enact a temporary, short-term tax
increase. Because we put partisanship aside to do what
needed to be done, Oregon survived the recession and soon
returned to many years of economic growth.

Oregon is in the midst of another serious recession, but this
legislature is responding very differently.

Instead of cutting spending, the legislature increased overall
state spending by 9%, or $4.7 billion.

Instead of enacting a temporary tax increase to help get
the state budget through a shortfall, the legislature enacted a
permanent $733 million tax increase—the largest tax increase
in Oregon history.

And instead of reaching across party lines, the Democrat
party that controlled the legislature refused to work with the
Republicans on a compromise plan that all legislators could
support.

I love Oregon. I've lived here all my life. Dolores and I raised
our children here, and now our grandchildren are being raised
here. I cannot support policies that I believe would harm
Oregon. I believe Measure 67 would cause many employers to
eliminate jobs or move out of Oregon, and would lengthen our
economic recession.

I urge you to join me in voting 'no' on measure 67. I know it
won't be easy for the leadership when these fail. It was not
easy for us. It was painfully difficult. But it is not easy for those
who today are unemployed. It will not be easy for those now
working to take a cut in income because of the proposed
permanent tax increase.

Sincerely,

Vic Atiyeh
Oregon Governor, 1979-87

(This information furnished by Vic Atiyeh.)

Argument in Opposition

The Legislature ignored thoughtful tax advice, sided with
special interests.

In 2007, the governor and legislature joined forces to create a
bipartisan group dedicated to finding solutions to the revenue
problems that loomed over Oregon's future.

That committee, the Task Force on Comprehensive Revenue
Restructuring, faced a daunting challenge. Their goal was to
suggest ways to promote stability for state and local governments,
create positive economic benefits for Oregon, and build
a financial foundation that would increase Oregon's competitiveness
in a global economy.

Over the course of a year, the task force read and discussed
hundreds of pages of studies, data and economic analysis. It
issued a massive report that contained both short- and long-term
recommendations on vital issues.

Not a single one of these recommendations was acted on by
the 2009 legislature.

Instead, the legislature ignored the hard work and advice given
by the Task Force that they created just two years earlier. They
gave into special interests by passing the largest tax increase
in Oregon's history, and they did it in the middle of the worst
economic crisis in 80 years.

In doing so, they have set in motion events that will cost
Oregon jobs, increase the instability of our tax system and
make Oregon less competitive in the world economy.

This tax increase was not necessary. Leadership and hard
choices were.

Vote NO on Measures 66 and 67. Tell the legislature to work for
meaningful, long-term changes in Oregon's taxing and budget
laws. Tell them to work to create jobs and opportunity and to
provide a fair and stable basis for paying for necessary public
services.

Argument in Opposition

As economists, we believe the legislature's permanent personal
and corporate tax increases will slow Oregon's recovery from
the current recession and permanently damage job growth in
the state.

Oregon has lost more than 130,000 private-sector jobs in this
recession. We cannot afford tax increases that will mean more
lost jobs.

"The last thing you want to do is raise taxes in the middle of a
recession," President Obama said this summer, "because that
would … take more demand out of the economy and put businesses
in a further hole." His view is supported by dozens of
academic studies tying higher income taxes to lower employment
and economic output.

Edmund Phelps, awarded a Nobel Prize for his study of economic
impacts of government policies, states, "Big increases in
payroll and personal-income taxes in most countries have been
mass job-killers."

Corporate income taxes are passed on to employees in lower
compensation or reduced employment, to consumers in
higher prices and to investors (retirement and college savings
accounts) in lower stock prices. Such taxes also stifle economic
growth. As Nobel Prize winner Joseph Stiglitz states, "Of
course, individuals pay the corporate income tax."

Higher personal income taxes reduce incentives for employees
to work and entrepreneurs to take the risks leading to job creation.
Nobel Prize-winning economist Edward Prescott states,
"If we establish rules that punish the winners, entrepreneurs
will take fewer risks and we will have less innovation, less
output, less job growth. The whole economy suffers under such
a scenario—not just those few individuals who are taxed at a
higher rate."

Argument in Opposition

Nursery and Greenhouse growers oppose Measure 67

Measure 67 does not provide tax reform – it only harms
struggling businesses
The nursery and greenhouse industry is a high transaction,
low margin sector of agriculture. We employ a year-round
workforce and export over 80% of our product out of state –
bringing important dollars back to Oregon. The cumulative
effect of Measure 67 will make it harder – not easier – for the
industry to continue being a national economic force. We are
facing shrinking demand, increased competition from Eastern
nursery states located closer to our primary markets, and
geographical disadvantages regarding labor and transportation
costs. With these competitive pressures, we cannot
embrace a modified "gross receipts" tax. Tax fairness is a topic
worthy of conversation, but it is not found in Measure 67. It's
short-sighted to cut down businesses that hire the workers who
contribute to the very foundation of state revenue.

Sales do not equate profit
Taxing business activity draws the erroneous conclusion that
sales equal profit. A $100 million corporation should not object
to a corporate minimum based on companies in states competing
for the same market share. However, it would be a tremendous
miscalculation to assume that agricultural businesses
whose sales exceed certain dollar figures result in burgeoning
profit margins. Clearly, it is time to change the $10 corporate
minimum for multi-million dollar companies. But calculating
a new corporate minimum based on gross sales, instead of a
measure that keeps Oregon businesses competitive, will only
further burden Oregon's struggling economy.

Join other states that have rejected large tax increases
Oregon, like many other states – including our neighbors in
California – rejects tax increases that do not lay a foundation
for certainty for public services. Send a message to our elected
officials to do what is needed to be done – tax reform.

Argument in Opposition

The recession has been especially painful in rural Oregon—including Douglas County.

Unemployment in Douglas County exceeds 16%. Many small
businesses have been forced to shut down, putting people out
of work. Many more are barely surviving.

Despite the tough times, members of the Roseburg Area
Chamber of Commerce continue to generously donate to our
community. Chamber members are proud to live, work, and
raise families in Roseburg. We love living close to the beautiful
Umpqua River. We love the spirit of "neighbor helping neighbor"
that can be found in Roseburg and so many other rural
towns and cities. We like the schools our kids attend, and want
them to be even better and stronger.

We believe the best way to build a strong Roseburg is to work
for a community that is economically strong - with growing
businesses that offer good paying jobs. More people working
and paying taxes means more money for our schools, roads
and police.

The Roseburg Chamber agrees with many experts that
Measure 67 will lead to fewer people working, which will keep
our economy in a recession for a longer time.

Many businesses in rural Oregon struggle to make payroll,
and making a profit is even tougher. Measure 67's new, higher
corporate minimum taxes businesses even when they make
NO profit. Businesses will have to pay high taxes to the state of
Oregon in good times and bad!

The new corporate minimum in Measure 67 is a permanent
tax increase of up to $100,000 on businesses that don't make a
profit. Worse, this tax increase is retroactive to January 1, 2009.
Businesses will be getting a second bill for more taxes.

Measure 67 is bad for the owners of small businesses, bad
for employees of small businesses, bad for consumers and
bad for Oregon.

Please join with the Roseburg Area Chamber of Commerce in
voting no on Measure 67.

Argument in Opposition

I am Executive Vice President of Associated Oregon Loggers,
an organization representing over 1,000 family-owned contract
logging companies and businesses associated with the logging
industry.

Our members employ over 12,000 Oregonians. Due to the
worst recession since the Great Depression, half of our
members are sitting at home instead of doing what they love,
using state-of-the-art knowledge and equipment to manage
Oregon forests.

Measure 67 will make that situation worse.

Measure 67 will force my members to lay off even more folks
in the face of the worst wood products market in 80 years.
Economists estimate that if Measures 66 and 67 pass, 70,000
more jobs will be lost.

Even though I am not an economist, I understand why a tax
increase would lead to more lay-offs. My members log for
corporations that will face a tax increase if Measure 67 passes.
The first thing they will do is pay loggers less for the logs they
deliver. Next, in order to stay in business, my loggers will have
to let some more employees go. If the mills don't pass on the
costs of the tax increase to their loggers, they will need to lay
off more of their own workers.

What is the other option? Everyone, from loggers to sawmills
to lumber wholesalers, is losing money in this recession/
depression. Companies have no magical pot of money sitting
around waiting to pay higher taxes. Cutting jobs will be the
direct result of increasing taxes in this economy. Oregon's
statewide unemployment rate, which is even higher in logging
communities, shows that jobs are hit the hardest in the recession.
Increasing taxes on corporations will hurt workers.

Even President Obama knows that "the last thing we want to
do is raise taxes in the middle of a recession."

Most new homes being sold are being sold at or below the
cost of construction

Yet the legislature imposed taxes that will make things worse

Measure 67 imposes a new corporate minimum tax based on
Oregon sales (not profit), which hits construction right between
the eyes.

In a home building company – where houses are sold for
hundreds of thousands of dollars even when the builder loses
money – this will result in further layoffs or reduction of benefits.
There is simply no other place from which the taxes can be paid.

An income tax system should tax income, not sales. Changing
the system now, in the middle of an economic catastrophe,
is not only unfair, it will eliminate thousands of jobs as businesses
reduce their costs to pay the state's increased taxes.

Home building has been a mainstay of Oregon's economy for
many years but the industry is barely treading water.

With these taxes, the legislature threw us an anvil
instead of a rope.

Argument in Opposition

FACTS YOU NEED TO KNOW

Our televisions, newspapers and mailboxes are being flooded
with politically slanted information on the tax increases. With
such political rhetoric, it can be difficult to tell fact from fiction.
Here are some simple but important facts you should know
about these proposed taxes:

Taxes are permanent
The tax increases imposed by the Legislature are permanent,
not temporary. They will continue to stifle Oregon's economy
long after the recession ends driving businesses and jobs out
of Oregon. We have learned from serving several years in the
Legislature that there is never enough money for Oregon government.
Our government must learn to live within its means,
just as Oregon families do.

Taxes are retroactive
These taxes on families and small businesses apply retroactively
on income dating back to the beginning of 2009. Many
have had taxes withheld expecting the current lower tax rate. If
adopted by the voters, these tax increases would unfairly apply
to all 2009 income leaving taxpayers stuck with an unexpectedly
large tax bill.

Taxes are a hidden sales tax
On nine occasions, Oregon voters have overwhelmingly
rejected a sales tax. Yet hidden here is a tax on business sales
that will drive increased consumer prices. Businesses may
write the tax checks to the government, but it is Oregon consumers
who will pay the bill.

Taxes increased by over 10,000 fold
The new corporate minimum tax is based solely on sales
revenue, not profitability. Currently, some businesses that
aren't making a profit pay a minimum tax of $10 a year. That
"minimum" tax could increase to $100,000 for businesses with
high sales volume. Even if they lose money their minimum tax
bill could be multiplied by 10,000 times!

Argument in Opposition

The Associated General Contractors Oregon-Columbia Chapter
Urges Your No Vote on Measures 66 and 67

Mike Salsgiver, Executive Director,
AGC Oregon-Columbia Chapter

The Associated General Contractors, Oregon-Columbia
Chapter, is a full-service construction trade association
with over 1,100 members serving Oregon and Southwest
Washington since 1920.

Of AGC's membership, 86 percent is composed of small, family
run businesses with 10 employees or less. It is those union and
non-union employees that build the roads, bridges, freeways,
office buildings, schools and other structures we all use every
day.

With those family run businesses and valued employees in
mind, AGC Oregon-Columbia Chapter members urge your
strong opposition to Measures 66 and 67.

Simply put, the legislature's $733 million in permanent tax
increases is a job-killer, particularly for employees in the
already struggling commercial construction industry.

Virtually all AGC members are suffering losses this year. Many
are struggling to sustain businesses that were founded in
Oregon generations ago. These companies are seeing their
gross receipts drop by between 30 and 70 percent compared
to just 18 months ago. In Oregon alone, construction jobs are
down by 35,000, from 110,000 in December 2007 to just under
75,000 today.

The legislatively approved taxes require our members to pay
up to $100,000 even when they are losing money. Businesses
struggling with the worst economy since the Great Depression
can ill afford any added expenses, let alone a $100,000 tax bill
when they're not earning a profit.

The new permanent taxes will leave many of our members
little choice but to curtail benefits, consider additional layoffs,
or, sadly, close down entirely. Most of these companies have
nowhere left to cut and for the commercial construction business,
the end of this recession may be two or more years away.

Please vote no on Measures 66 and 67 and save your friends
and neighbors from falling prey to the 70,000 lost jobs economists
believe the $733 million in permanent tax increases will
cost Oregonians.

Argument in Opposition

YOU have a right to know the Legislature's tax increases are
permanent. Voters are given no clue that legislators exploited a
short-term economic crisis to pass permanent tax increases.

YOU have a right to know that the tax increases are retroactive.
Proponents of the measures fail to clearly explain that the tax
increases reach back to Jan. 1, 2009, and that no money has
been withheld from Oregon taxpayers to cover these retroactive
tax increases.

YOU have a right to know that the tax package includes a new
tax of up to $100,000 on businesses that do not make a profit.

YOU have a right to know that defeat of these measures will
NOT mean automatic cuts to current budgets. Legislators have
$1 billion in other options they can use.

Ramming through shortsighted tax increases is part of the legislative
leadership's pattern of delay, denial and deceit.

First, the leaders denied requests to send the measures out for
a vote. Then they tried to change the law so a "yes" vote would
mean no and a "no" vote would mean yes if the taxes made
it to the ballot. Then they said nothing as Gov. Ted Kulongoski
delayed signing the measures so citizens would have less time
to gather signatures to put them on the ballot. They even spent
taxpayer dollars to hire private investigators to spy on signature
gatherers.

It seems like an awful lot of effort to hurt the very people the
Legislature is supposed to be serving. Makes you wonder what
was so rotten with the measure in the first place that they had
to go to all that trouble to cover it up.

Vote no on Measures 66 and 67. Vote no on dishonest government.
Vote no on unnecessary, hurtful taxes.

Sincerely,
Sharon Livingston
Chief Petitioner

(This information furnished by Sharon Livingston.)

Argument in Opposition

Save Oregon Jobs, Support Small Business,
Grow the Economy

Vote No on Job-Killing Taxes

Oregon has lost almost 130,000 jobs since the recession began
in November 2007. While tens of thousands of quality private
sector jobs have vanished, the state government's employment
has increased by two percent. Rather than working to
put our economy back on track, the 2009 Legislature passed
$733 million in permanent, job-killing tax increases. These tax
increases will threaten Oregon jobs and prolong the state's
economic recovery.

These tax increases are targeted at those who create quality,
family-wage jobs. Many Oregonians affected by these tax
increases are small business owners, family farmers and
others who're struggling to survive this recession. By increasing
taxes during an economic downturn, there will be fewer
resources for job creation and reinvestment in Oregon equipment
and services. Faced with having to send more dollars
to Salem, many businesses will be forced to lay off workers,
reduce wages and benefits, raise prices, or even close their
doors.

Balance the Budget by Growing the Economy,
Not Passing Job-Killing Taxes

Oregon can't balance the budget when the economy is poor
and people aren't working. Rather than raising taxes during a
recession, the Legislature should focus on improving Oregon's
competitiveness and helping small businesses succeed. When
the economy is healthy, businesses and employed Oregonians
will generate the tax revenue necessary for funding critical
services. These tax increases will cost Oregon jobs, and their
negative effects on our economy will generate significant
budget shortfalls far into the future.

Please Join Us in Voting No on Measures Job-Killing Taxes

As state legislators, we believe government should focus on
what matters: growing the economy, creating family wage jobs
and spending your tax dollars wisely. Permanent, job-killing
taxes are not the answer. Please join us in voting No.

Cut taxes on unemployment benefits for hundreds of thousands
of Oregonians.

Protect Oregon's middle-class families and small businesses
while making sure that big corporations—including
Wall Street banks and credit card companies—pay more
than $10.

VOTE NO if you want to:

Keep the 1930s law that allows corporations to pay just $10
a year in the corporate minimum income tax.

Force additional cuts of nearly $1 billion from schools,
public safety, senior care and other essential services in a
February special session of the legislature.

Make out-of-work Oregonians pay taxes on their unemployment
benefits.

THE RIGHT THING TO DO IS UP TO YOU.

Our Oregon is a non-partisan non-profit organization
dedicated to promoting economic and tax fairness for all
Oregonians; protecting schools, public safety and healthcare;
and stopping unfair tax giveaways and loopholes that shift
the burden to the middle class.